Emergency Bankruptcy Filings San Francisco CA

You may feel hopeless, and at the mercy of a faltering economy, but don’t despair. Relief is available, and there is no shame in using the law to protect yourself when you are buried under a pile of debt. You aren’t responsible for the economy, and you didn’t create the mortgage crisis. So use the law to protect yourself and your family.

A Second Chance

Bankruptcy laws are in place to help Americans get a second chance when they are snowed under by economic pressures. You have rights, including the right to be free from harassment by creditors. If your creditors are hounding you, you can make them pay. And if your debt has become more than you can manage, you may be able to file for bankruptcy.

Foreclosures have actually been on the increase since 2008. From 2007 to 2009 around 3 million property owners were dealing with foreclosure. That number has actually tripled in size. This property collapse integrated with economic troubles and many homeowner being “upside down” or “undersea” in their houses has actually caused a realty crisis in the United States.

Americans are relying on filing Chapter 13 bankruptcy in order to stop an upcoming foreclosure sale. The original purpose of Chapter 13 bankruptcy was to allow an individual who was dealing with monetary mess up to position all of their monetary responsibility into one huge amount which would then be rearranged and settled one month at a time over a 3 to 5 year duration.

In general, a Chapter 13 bankruptcy needs more than just a home being “underwater” for a court to rule in your favor. If your revenues is adequate for making your home mortgage payments and you have no real notable financial obligation, then you more than likely will not get authorized for a Chapter 13 bankruptcy. Of course, your scenarios might be various or there might be other conditions that utilize. But merely being “undersea” by your home loan and behind on your payments is typically not enough to certify.

If your monetary scenario is temporarily in disorder because of unanticipated expenses, medical emergency situations, major cars and truck repair work, and so on, alerting your loan provider is important. It is really possible that the loan service provider might use a short-term deferment of your payments or provide you with re-payment terms which allow you to briefly decrease your payments owed in return for an extension of your home mortgage. Getting in touch with a knowledgeable, knowledgeable attorney– a genuine specialist in San Francisco Bankruptcy– can offer you the recommendations and representation you require when dealing with such a situation.

Stop Foreclosure with a Bankruptcy Lawyer in San Francisco CA

When you send either a Chapter 13 or Chapter 7 bankruptcy, the court instantly issues an order (called the order for relief) that consists of an “automated stay.” The automated stay directs your lenders to stop their collection activities instantly. No reasons. If your home is arranged for a foreclosure sale, the sale will be legally delayed while the bankruptcy is pending– typically for 3 to 4 months. Especially when you live in San Francisco California or in a nearby city

However, there are 2 exceptions to this general guideline:

Motion to raise the stay: If the loan service provider obtains the bankruptcy court’s approval to proceed with the sale (by filing a “movement to raise the stay”), you might not get the full 3 to 4 months. But even then, the bankruptcy will normally hold off the sale by a minimum of 2 months, and even more if the loan provider is slow in pursuing the motion to lift the automated stay.
Foreclosure notice currently submitted: Sadly, bankruptcy’s automatic stay won’t stop the clock on the advance notice that a lot of states require prior to a foreclosure sale can be held (or a motion to raise the stay can be sent). For example, prior to offering a home in California, a loan company has to provide the owner a minimum of 3 months’ notification. If you get a three-month notification of default, and after that file for bankruptcy after 2 months have in fact passed, the three-month period will expire after you have remained in bankruptcy for only one month. At that time the loan supplier could file a movement to lift the stay and ask the court for consent to organize to stop the foreclosure sale. This does not suggest the loan supplier’s movement would be given, however it is best to have a competent legal representative in your corner in an effort to prevent that from happening.

Many people will do whatever they can to stay in their house for the indefinite future. If that explains you, and you’re behind on your home loan payments without any possible technique to obtain present, the only technique to keep your home might be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you settle the “balance due” (late past due payments) over the length of a payment plan you propose– 5 years sometimes. However you’ll need adequate earnings to at least satisfy your present home mortgage payment at the same time you’re settling the balance due. Presuming you make all the required payments up to completion of the payment plan, you’ll avoid foreclosure and keep your home.

2nd and 3rd home mortgage payments:

Chapter 13 may similarly assist you remove the payments on your 2nd or 3rd home mortgage. That’s because, if your first home mortgage is protected by the entire worth of your home (which is possible if the home has dropped in worth), you might not have any equity with which to protect the later home mortgages. That allows the Chapter 13 court to “eliminate off” the 2nd and 3rd home loans and re-categorize them as unsecured debt– which, under Chapter 13, takes last issue and frequently does not need to be paid back at all. All of this is common in California and throughout the region and remember, the time to do something is now.